A stock index consists of businesses in both Europe and the United States. Assume that each businesscomprising the stock index makes a profit or loss independently of the other businesses in the index. Supposethat an American business on the stock index makes a profit 90% of the time and a European business makesa profit 40% of the time. If there are 1440 American businesses and 400 European businesses in the stockindex, what is the expected number of businesses in the stock index to make a profit?

Given the probability that American business makes a profit = 90% = 0.90 Given the probability that…

Answered: A stock index consists of businesses in…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 11 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day showed that 11 went up. You are conducting a study to see if the proportion of stocks that went up is significantly less than 0.3. You use a significance level of a = 0.05. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) a O greater than a This test statistic leads to a decision to... O reject the null O accept the null O fail…
It is known that in any given year, • 90% of the people in a city move to the suburbs; • 80% of the people in the suburbs do not move to the city. Given an initial city population of 55,000 and an initial suburb population of 77,000, what are the long-term population levels of the city and the suburb?
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price. On the basis of this fact, a financial analyst claims we can assume that 55% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 79 stocks traded on the NYSE that day showed that 48 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 55%. You use a significance level of a = 0.025. 1. For this study, we should use Select an answer 2. The null and alternative hypotheses would be: Ho:? v Select an answer v (please enter a decimal) Hi:? vSelect an answer v (Please enter a decimal) 3. The test statistic (please show your answer to 3 decimal places.) 4. The p-value = (Please show your answer to 4 decimal places.) 5. The p-value is ? va 6. Based on this, we should Select an…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.On the basis of this fact, a financial analyst claims we can assume that 54% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day showed that 35 went up. You are conducting a study to see if the proportion of stocks that went up is significantly smaller than 54%. You use a significance level of α=0.05α=0.05. how to you come up with the test statistic and p value using excel
The less correlated the securities in a portfolio, Select one: O a the higher the diversifiable risk. O b. the higher the portfolio risk. O c. the lower the portfolio risk. Od the lower the unsystematic risk.
A gerontologist investigating various aspects of aging process wanted to see whether staying “ lean and mean, “ that is, being under normal body inbred line to one of three diets: (1) unlimited access to food, (2) 90% of the amount of food that a rat of size would normally eat, or (3) 80% of amount of food that a rat of the size would normally eat. She maintained the rats on three diets throughout their lives and recorded their lifespans (in years). Five rates in each group. Is there evidence that diet affected life span in this study? Let α= 0.01 Complete the ANOVA table . Source of variation df SS MS Fc Treatment 2 1.575 Error 12 Total 14 5.60 A) Hypothesis Test H0: H1: B) Test Statistic C) Decision Rule d) Conclusion *(please with equations and explanation) and thamnk you
Three businesswomen are trying to convene in Cincinnati for a business meeting. The first women (Woman 1) is arriving on a flight from Atlanta, the second (Woman 2) is arriving on a flight from Dallas, and the third (Woman 3) is arriving on a flight from Chicago. Historical data suggests that the Atlanta flight is “on time” 90% of the time, the Dallas flight is “on time” 95% of the time, and the Chicago flight is “on time” 80% of the time. Furthermore, historical data suggests that the three flights are independent with respect to on time behavior. Define the sample space for this random experiment. Compute the probability for each of the outcomes in the sample space. Let W denote the number of business women that arrive on time. Construct the probability mass function of W Construct the cumulative distribution function of W Find the expected value of W Compute the standard deviation of W

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